Correlation Between First Abacus and Balai Ni
Can any of the company-specific risk be diversified away by investing in both First Abacus and Balai Ni at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining First Abacus and Balai Ni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Abacus Financial and Balai Ni Fruitas, you can compare the effects of market volatilities on First Abacus and Balai Ni and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in First Abacus with a short position of Balai Ni. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Abacus and Balai Ni.
Diversification Opportunities for First Abacus and Balai Ni
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Balai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding First Abacus Financial and Balai Ni Fruitas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balai Ni Fruitas and First Abacus is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on First Abacus Financial are associated (or correlated) with Balai Ni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balai Ni Fruitas has no effect on the direction of First Abacus i.e., First Abacus and Balai Ni go up and down completely randomly.
Pair Corralation between First Abacus and Balai Ni
If you would invest 69.00 in First Abacus Financial on September 1, 2024 and sell it today you would earn a total of 0.00 from holding First Abacus Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.53% |
| Values | Daily Returns |
First Abacus Financial vs. Balai Ni Fruitas
Performance |
| Timeline |
| First Abacus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Balai Ni Fruitas |
First Abacus and Balai Ni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Abacus and Balai Ni
The main advantage of trading using opposite First Abacus and Balai Ni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Abacus position performs unexpectedly, Balai Ni can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Balai Ni will offset losses from the drop in Balai Ni's long position.| First Abacus vs. Bright Kindle Resources | First Abacus vs. Allhome Corp | First Abacus vs. LFM Properties Corp | First Abacus vs. Altus Property Ventures |
| Balai Ni vs. Manila Mining Corp | Balai Ni vs. Philippine Savings Bank | Balai Ni vs. Jollibee Foods Corp | Balai Ni vs. Metro Retail Stores |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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